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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
““Too Late,” and the Fed, are choking out the housing market with their high rate, making it difficult for people, especially the young, to buy a house. He is truly one of my worst appointments. Sleepy Joe saw how bad he was and reappointed him anyway – And the Fed Board has done nothing to stop this “numbskull” from hurting so many people. In many ways the Board is equally to blame! The USA is Rockin’, there is VERY LOW INFLATION, and we deserve to be at 1%, saving One Trillion Dollars a year on Interest Costs. I can’t tell you how dumb Too Late is – So bad for our Country!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Donald Trump’s criticism of the Federal Reserve’s interest rate policy could lead to increased volatility in the stock market, particularly affecting housing-related stocks such as D.R. Horton Inc, Lennar Corporation, and PulteGroup, as higher rates may dampen housing demand. Financial sector ETFs like the Financial Select Sector SPDR Fund and Vanguard Financials ETF might experience fluctuations due to the potential impact on banks’ lending activities. Real estate ETFs, including the Vanguard Real Estate ETF, iShares U.S. Real Estate ETF, and Real Estate Select Sector SPDR Fund, could see pressure as higher interest rates typically lead to higher borrowing costs, affecting real estate investments.
Here are some of the stocks that might be affected:
D.R. Horton Inc ((DHI)),
Lennar Corporation ((LEN)),
Pultegroup ((PHM)),
Financial Select Sector SPDR Fund ((XLF)),
Vanguard Financials ETF ((VFH)),
Vanguard Real Estate ETF ((VNQ)),
iShares U.S. Real Estate ETF ((IYR)),
Real Estate Select Sector SPDR Fund ((XLRE)).